According to the CFTC complaint, these organizations defrauded 32 clients and stole $3.6 million worth of their assets. The platform’s creators offered investors trading commodity futures, currency contracts, and leveraged trading, encouraging people to invest in fiat currencies and digital assets. The agents of these investment platforms guaranteed investors a profit of 10% to 30% per transaction. So-called financial advisors promised investors inside information and specific trading tips.
After funding their account, clients were given access to fake online trading account statements showing their deposits and “profits.” The CFTC said the companies did not actually engage in any trading transactions. Instead of providing margin trading services, scammers appropriated client funds and transferred them to offshore organizations unrelated to commodity trading.
The regulator demanded that these platforms return the illegally obtained money to defrauded customers and fully compensate them for their losses. The Office is also seeking civil penalties, trading bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
In May, the CFTC fined cryptocurrency broker FalconX $1.8 million for failing to register and violating commodity laws, and in June began investigating cryptocurrency market maker Jump Crypto.
Source: Bits
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